Arista Networks (ANET) is due to report their latest quarterly numbers after the close of trading this coming Monday. Let's check out the charts and indicators of this company that is a leader in data-driven, client to cloud networking for large data center, campus and routing environments.
We have not looked at the charts since March 1 and a lot has happened in the past year.
In the updated daily bar chart of ANET, below, we can see that the shares climbed higher the past 12 months with a big upside gap in early November. Prices are testing the declining 50-day moving average line and trade above the rising 200-day line.
The On-Balance-Volume (OBV) line shows an uneven rise from early October but overall tells us that buyers of ANET have been more aggressive. The Moving Average Convergence Divergence (MACD) is below the zero line but it has crossed to the upside for a cover shorts buy signal.
In the weekly Japanese candlestick chart of ANET, below, we can see that the gap or window on the daily bar chart disappears on this weekly chart. The middle of the long white (bullish) candle in early November should act as support -- roughly the $105 area.
The OBV line shows a steady rise from the fourth quarter of 2020. The MACD oscillator has crossed to the downside but remains well above the zero line.
In this daily Point and Figure chart of ANET, below, we can see a potential downside price target of $103.
In this second Point and Figure chart of ANET, below, we used weekly close-only price data. Here a price target of $97 indicated.
Bottom-line strategy: I have no special knowledge of what the CFO of ANET may tell their shareholders next week but the two Point and Figure charts suggest there may be some downside risk. Avoid the long side for now but I might want to be a buyer in a couple of months.
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